Jobless claims have been volatile in recent weeks
WASHINGTON — The number of newly laid off workers seeking unemployment benefits dropped much more than expected last week.
The Labor Department reported Thursday that applications for unemployment benefits fell to 365,000, a decline of 18,000 from the previous week. Economists had been looking for a much smaller decrease of around 5,000.
Weekly jobless claims have been exceptionally volatile in recent weeks because of strike-related layoffs in the auto industry and an unusually early Easter, which has played havoc with the government’s seasonal adjustment measurements.
Many economists believe that a prolonged housing slump and severe credit crisis have pushed the economy into a recession. For that reason, they believe job layoffs will rise in coming months as the unemployment rate climbs higher.
Ian Shepherdson, chief U.S.
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